One area where Microsoft beats Amazon in the cloud

Microsoft’s got the whole cloud enchilada

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Competition between Microsoft Azure and Amazon Web Services for supremacy in the IaaS public cloud is as high as it’s been, as evidenced by yesterday’s announcements by Microsoft of various new features.

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At the company’s AzureCon virtual event yesterday, Microsoft officials boasted about the company’s public cloud, while taking some digs at competitors. Here’s Microsoft EVP of Enterprise and Cloud Scott Guthrie:

No other company out there offers the breadth and depth of what the Microsoft cloud platform delivers. AWS does infrastructure, but doesn’t offer SaaS-based offerings; companies like Salesforce have SaaS, but no infrastructure or higher level services.

This is the crux of Microsoft’s argument: If you want SaaS and IaaS; public and private cloud, come to them. AWS, at least in the past, has argued that almost all workloads are eventually moving to the public cloud.

Microsoft’s strategy of covering IaaS, SaaS and PaaS markets means that it collects more cloud revenue than AWS, according to research firm Wikibon.

The Massachusetts-based firm estimates that last year across SaaS and IaaS Microsoft raised $4.881 billion. This year, Wikibon estimates that Microsoft will close out 2015 with $9.274 billion in cloud revenue.

AWS, meanwhile, only has an IaaS business. Last year that collected $4.644 billion, while this year Wikibon reckons it will rake in $7.575 billion.

By comparison, reported $4.07 billion in revenue from its SaaS last year.

So, Microsoft beats Amazon in terms of cloud revenue. Is it apples-to-apples? Not really, given that Microsoft includes Office 365 SaaS revenues in its cloud. An IaaS- to-IaaS comparison would be interesting to see, as likely a large majority of that $9.2 billion in cloud revenue from Microsoft comes from Office 365/SaaS.

AWS will have its chance to respond next week at its re:Invent conference in Las Vegas.

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Copyright © 2015 IDG Communications, Inc.

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